Silicon Valley Group's Lobbying Pays Off

Carla Marinucci, Chronicle Political Writer

Published
4:00 am PST, Saturday, March 14, 1998

The Technology Network, the high-powered Silicon Valley consortium, has quickly learned how to flex "growing political muscle" on Capitol Hill by collecting and funneling thousands of dollars in campaign contributions to key legislators, according to a new report from the Center for Responsive Politics.

Known as TechNet, the group tries to raise up to $4 million annually to lobby technology issues. It has gained clout on Capitol Hill by also acting as a "conduit" for other donors, according to the Washington-based center.

A year-end filing with the Federal Election Commission shows that the Silicon Valley advocacy group, formed last July, acted as a conduit for nearly $120,000 in contributions to key lawmakers who are dealing with critical technology-related legislation, the center said.

TechNet's leaders are "savvy and they've learned the rules of the game very quickly," said Jennifer Schecter, a researcher with the center who produced the "Money in Politics" report. "Their giving isn't random, nor is it naive. They have a lot of money, and they've used it to their advantage."

News of TechNet's growing political clout comes just as the some of the group's core members have concluded a meeting with Vice President Al Gore and Russian Prime Minister Viktor Chernomyrdin at Cisco Systems in San Jose. The meeting on Thursday was one of a monthly series Gore has held with many insiders in TechNet, whose members include venture capitalists John Doerr and Brook Byers, Marimba's Kim Polese, Halsey Minor of Cnet and other leading CEOs.

"Money buys you access, influence and a seat at the table," said Schecter.

But Wade Randlett, spokesman for TechNet, said the group "has literally gotten more access -- two to five times (more) -- than we can take advantage of, and it has nothing to do with money. Silicon Valley is the future. It's where the jobs are being created, high- wage jobs. Everybody wants to come and figure out how this stuff is working."

Randlett said TechNet's goals are to raise $2 million to $4 million annually for both Republicans and Democrats. The purpose is "to build relationships the right way," by facilitating meetings between legislators and technology leaders to discuss vital issues of concern. That "results in more informed legislation," he said.

The center's report shows TechNet has raised just $54,000 and donated more than $17,000 to federal candidates and other political committees on its own.

Schecter said TechNet has more commonly favored acting as an intermediary that bundles campaign contributions and then doles them out to individuals or candidates. The benefit of that role -- which is legal under campaign spending laws -- is those funds are not counted against the political action committee's own legal campaign spending limits.

For example, TechNet was "allowed to give $5,000 of its own money in 1997 to the New Republican Majority," the leadership political action committee of Republican Senate Majority Leader Trent Lott, the center's report noted. And Technet also served as a conduit for $44,500 in contributions to the New Republican Majority between October 31 and November 26, the report said.

TechNet also funneled 39 contributions totaling $37,500 to Senator Alfonse D'Amato, R-N.Y., far surpassing the $1,000 limit which TechNet itself could give to D'Amato, and did, the report said. D'Amato sits on the Senate Finance Committee, which has jurisdiction over proposed legislation to restrict shareholders lawsuits in court -- an issue which the technology leaders have fought for bitterly on the state and national level.